Brazilian state Mato Grosso sees big fall in shipments to China

China, which has been the largest purchaser of Mato Grosso meat, decreased in June, turnover in 61.9% "in the collection, on-month." The IMEA - Mato Grosso Institute of Agricultural Economics - believes that it is a "strange particularity in minimal" and that the reduction of purchases by the Chinese generated "concern to the market." The devaluation of the dollar against the real (passing from 20% in January so far) "negatively affected Brazilian exports" and meat sales abroad are having "negative growth since May." Sales last month were 0.67% lower than in June. "It is the smallest value obtained from 2013 in a month of July."

Business were $ 71 million (in 2015 was 97 million dollars) and last month 72 million. World Beef Report noted: China show recovery signs but negotiations are hard. The Chinese beef market “is not yet adapted” to the prices required by the Mercosur industry. Operators working in that market coincide that demand show signs of recovery but that are not yet transferred to prices. A trader reports a shipment of shin & shank from Uruguay at US$/t 4,900 CFR, 5+8 rib at US$/t 3,200 CFR and knuckle at US$/t 4,800 CFR. Brazilian fresh beef sales to China sunk to 3,495 tons swt in July, the lowest volume in the trade current since June of last year, when China reopened its market for Brazilian fresh beef. A worse competitiveness of exporters due to a currency revaluation, the problems of Chinese importers to accept the prices asked by exportation and improvements in other markets that compete for the same cuts, like Russia, were the reasons for such a sharp fall.